S4107

An Act concerning certain environmentally responsible businesses and supplementing Title 52 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. Notwithstanding any other provision of State law, or any rule or regulation adopted pursuant thereto, to the contrary, the Director of the Division of Purchase and Property in the Department of the Treasury, the Director of the Division of Property Management and Construction in the Department of the Treasury, or any State agency having authority to contract for the purchase of goods and services, shall wherever possible give preference to goods and services provided by a green company designated pursuant to subsection b. of this section.

In preparing the specifications for any contract for the purchase of goods and services, the Director of the Division of Purchase and Property, the Director of the Division of Property Management and Construction, or any other State agency having authority to contract for the purchase of goods or services shall include in the invitation to bid, where relevant, a statement that any response to the invitation that proposes or calls for the use of goods or services provided by a green company designated pursuant to subsection b. of this section shall receive preference wherever possible over other comparable bids.

Any preference provided pursuant to this subsection may not supersede any preference given to recycled paper and paper products pursuant to P.L.1987, c.102 (C.13:1E-99.11 et seq.) or other preferences, provided pursuant to other provisions of law, for goods or services with significant environmental benefit, as determined by the Commissioner of Environmental Protection.

b. The Commissioner of Environmental Protection, in consultation with the State Treasurer, shall designate a business, company, or corporation as a green company if the business, company, or corporation:

(1) manufactures products, or provides services, that are environmentally responsible and known to be green or sustainable products or services;

(2) uses practices and follows policies that are environmentally responsible and known to be green or sustainable practices and policies; and

(3) is located in the State, or within 50 miles of the State.

A green company shall also mean a business, company, or corporation that, pursuant to a purchasing contract with the State, would be selling goods to the State that are manufactured by a green company designated pursuant to this subsection.

Prior to designating a business, company, or corporation as a green company, the Commissioner of Environmental Protection shall consider raw materials acquisition, production, manufacturing, packaging, distribution, reuse, maintenance, operation, and disposal practices, as applicable, of the business, company, or corporation.

A green company may include, at the discretion of the Commissioner of Environmental Protection in consultation with the State Treasurer, a business, company, or corporation designated as environmentally responsible pursuant to subsection a. of section 1 of P.L.2009, c.316 (C.13:1D-148).

c. The provisions of subsection a. of this section shall not apply:

(1) to any binding contractual obligations for the purchase of goods or services entered into prior to the effective date of this act;

(2) to bid packages advertised and made available to the public, or to any competitive and sealed bids received by the State, prior to the effective date of this act;

(3) to any amendment, modification, or renewal of a contract, which contract was entered into prior to the effective date of this act where the application would delay timely completion of a project or involve an increase in the total moneys to be paid by the State under that contract; or

(4) to a contract for the design, construction, improvement, or maintenance of any public work.

d. The State Treasurer, in consultation with the Commissioner of Environmental Protection, shall establish a procedure for resolving any dispute that may arise from the awarding of a public contract by the State pursuant to subsections a. and c. of this section.

e. As used in this act:

“Green or sustainable practices or policies” means those practices or policies, as appropriate, which contribute to an improved environment and result in sound environmental practices and important environmental benefits to the State, and include: energy conservation, energy efficient or renewable energy techniques, increased recycling or use of recycled materials and products, air pollution or emissions reduction, solid waste reduction, water conservation, or other related practices and techniques that make significant improvements to protecting the environment or conserving resources.

“Green or sustainable products or services” means those products or services, as appropriate, which contribute to an improved environment and support State environmental and energy goals and result in important environmental benefits to the State, and include: energy conservation, energy efficient or renewable energy technologies or services related thereto, recycled products and materials, recycling services, products or services to reduce air pollution, greenhouse gas emissions, solid waste, or water usage, and other related products and services. “Green or sustainable products or services” may also include products or services related to a high performance green building, as defined pursuant to section 1 of P.L.2007, c.269 (C.52:32-5.3).

2. This act shall take effect immediately.

STATEMENT

This bill would provide any local and environmentally responsible business that is designated as a “green company,” a preference in the awarding of State contracts wherever possible.

Under the bill, the Commissioner of Environmental Protection, in consultation with the State Treasurer, would designate a business, company, or corporation as a green company if the business, company, or corporation:

1) manufactures products, or provides services, that are environmentally responsible and known to be green or sustainable products or services;

2) uses practices and follows policies that are environmentally responsible and known to be green or sustainable practices and policies; and

3) is located in the State, or within 50 miles of the State.

A green company also includes a business, company, or corporation that, pursuant to a purchasing contract with the State, would be selling goods to the State that are manufactured by a designated green company.

At the discretion of the Commissioner of Environmental Protection in consultation with the State Treasurer, a green company may also include a business, company, or corporation designated as environmentally responsible pursuant to N.J.S.A.13:1D-148.

The bill requires the Director of the Division of Purchase and Property in the Department of the Treasury, the Director of the Division of Property Management and Construction in the Department of the Treasury, or any other State agency having authority to contract for the purchase of goods or services, to give preference, wherever possible, to goods and services provided by a green company when entering into or renewing a contract for the purchase of goods or services. The bill further provides that any preference given to a green company would not supersede the preference given to recycled paper and paper products under N.J.S.A.13:1E-99.11 et seq., or other preferences, provided under existing law, for products or services with significant environmental benefit, as determined by the Commissioner of Environmental Protection.

The bill specifies that the preference provided under the bill would not apply to:

1) any binding contractual obligations for the purchase of goods or services entered into prior to the date the bill becomes law;

2) bid packages advertised and made available to the public, or to any competitive and sealed bids received by the State, prior to the date the bill becomes law;

3) to any amendment, modification, or renewal of a contract, that was entered into prior to the date this bill became law, where the application would delay timely completion of a project or involve an increase in the total moneys to be paid by the State under that contract; and

4) to a contract for the design, construction, improvement, or maintenance of any public work.

Finally, the bill directs the State Treasurer, in consultation with the Commissioner of Environmental Protection, to establish a procedure for resolving any dispute that may arise from the awarding of a public contract by the State pursuant to the provisions of this bill.

This bill would further support State policies to “go green” by providing a purchasing preference to companies known to be environmentally responsible and selling products, providing services, or using practices or policies that further this purpose.